Last year, only 29% of people reported financial considerations in their New Year’s resolutions; trailing far behind faith, family and personal wellness. But did you know that in order to retire comfortably it is recommended that you save 10 times your highest annual salary? For example, those who make a maximum salary of $75,000 per year would need to save $750,000 by retirement.
Are you on track to meet your retirement number? If your savings is looking a little lower than you’d like, below are four financial resolutions that will help you get on the right track in 2018:
Resolution #1: Diversify Your Income Streams
Does the bulk of your annual income come from one source? Create a game plan to grow other income streams so that you increase your overall income and decrease your reliance on any one source of income.
Take that hobby or passion and turn it into a business. Not only will it boost your income, and thereby your savings, but should anything happen to your main source of income, it’s now also your back up plan.
Resolution #2: Get Organized and Stay Organized
When juggling multiple priorities like work, family, volunteer work, household chores, etc. it’s only natural that organizing finances would get put on the back burner. Thankfully, there are now easy online tools and apps that make this much easier than it used to be. A few favorites:
Mint: shows you your balances, lets you pay your bills, track your investments, and more—all in one place.
Shoeboxed: helps you digitize and organize all of your receipts; plus it archives everything and is completely searchable.
Buxfer: allows you to neatly split expenses, create budgets and bill reminders if you share costs with family members or a significant other.
Resolution #3: Stop Neglecting Your Insurance Policies
It’s good practice to review your insurance policies annually. Review your auto insurance, homeowners’ insurance, life insurance, business and even umbrella policies (these are particularly important because as your net worth increases your liabilities could increase). Get quotes from other sources and ensure you’re not overpaying for coverage that could be more affordable elsewhere.
Resolution #4: Perform a Thorough Retirement Check-Up
Finally, meet with your financial advisor to review your retirement plan. With a complete understanding of where you stand with your retirement savings, it’s possible you’ll find places to improve. Review how much you have saved, how much you’re adding each year, and whether you’ll end up with enough savings if you continue your present course.
Your financial stability impacts both your physical well-being and the well-being of your family. As you set your resolutions for the New Year, keep in mind these four important financial resolutions and check-points – they could be easier to check off your list than you imagine.
Financial adviser, retirement wealth strategist, co-founder of Strategy Financial Group and author of “Climbing the Retirement Mountain,” Calvin Goetz is an Investment Adviser Representative who holds the Series 65 securities license, is life and health insurance licensed in the state of Arizona and is a member of Ed Slott’s Elite IRA Advisor Group™ and the National Association of Insurance and Financial Advisors (NAIFA). For more information, visit StrategyFinancialGroup.com.